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GST Registration - Overseas Client

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Newbie

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Hi,

 

I'm a sole trader and at least 95% of my income is for a single overseas client who is not eligible to pay GST.

 

At what point do I need to register for GST? When the total of my combined income from the overseas client and any local client reaches $75,000 or the total of my income liable for GST (this will never happen)?

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ATO Certified

Community Support

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Hi @duncw,

 

Thanks for your question!

 

When working out turnover for GST for sales made to an overseas client you need to determine if your sales are connected with Australia.

 

GST turnover is calculated on your gross business income (not your profit), excluding any:

  • GST you included in sales to your customers
  • sales that are not for payment and are not taxable
  • sales not connected with an enterprise you run
  • input-taxed sales you make
  • sales not connected with Australia

So if the sales made to your overseas client are deemed "not connected with Australia", then the amounts will not be included when you work out your GST turnover. If the remainder of your income does not reach the threshold, then you do not have to register for GST.

 

Hope this helps,

 

Rachael B.

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @duncw,

 

Thanks for your question!

 

When working out turnover for GST for sales made to an overseas client you need to determine if your sales are connected with Australia.

 

GST turnover is calculated on your gross business income (not your profit), excluding any:

  • GST you included in sales to your customers
  • sales that are not for payment and are not taxable
  • sales not connected with an enterprise you run
  • input-taxed sales you make
  • sales not connected with Australia

So if the sales made to your overseas client are deemed "not connected with Australia", then the amounts will not be included when you work out your GST turnover. If the remainder of your income does not reach the threshold, then you do not have to register for GST.

 

Hope this helps,

 

Rachael B.